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Lithia (LAD) and Marubeni Make Minority Investment in Wheels

Zacks Equity Research
·2-min read

Lithia Motors, Inc. LAD, alongside Marubeni Corporation, has made a notable minority investment in Wheels, a prominent fleet management company in North America. This strategic move positions Wheels with key players in the mobility industry as it carries on to innovate its top-tier product offerings for corporate clients. Recognizing the ever-evolving automotive sector, Wheels values the extensive industry expertise brought by Marubeni and LAD.

Marubeni has been investing in the U.S. automotive value chain since 1958, with a portfolio that includes consumer auto finance, refrigerated trailer rental and leasing, and short-term commercial vehicle rentals. As a partner in Wheels, alongside Apollo-managed funds, Marubeni supports Wheels' long-term goals and provides access to diversified funding through its Japan-based connections.

Lithia, one of the largest dealership groups in the United States, shares Wheels' dedication to offering comprehensive services throughout the vehicle lifecycle, from acquisition and financing to maintenance and repair.

The transaction is anticipated to be finalized in the third quarter of 2024, pending standard closing conditions.

In the first quarter of 2024, Lithia’s revenues rose to $8.6 billion compared with $7 billion in the first quarter of 2023, driven by strong performance across new and used vehicle retail and service, body and parts segments.

Zacks Rank & Key Picks

LAD currently carries a Zacks Rank #5 (Strong Sell).

Some better-ranked stocks in the auto space are Blue Bird Corporation BLBD, Suzuki Motor Corporation SZKMY and American Axle & Manufacturing Holdings, Inc. AXL, each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The consensus estimate for BLBD’s 2024 sales and earnings suggests year-over-year growth of 17.29% and 155.14%, respectively. The EPS estimates for 2024 and 2025 have improved 63 cents and 69 cents, respectively, in the past 60 days.

The Zacks Consensus Estimate for SZKMY’s 2024 earnings suggests year-over-year growth of 2.09%. The EPS estimates for 2024 and 2025 have improved 38 cents and 15 cents, respectively, in the past 30 days.

The Zacks Consensus Estimate for AXL’s 2024 sales and earnings suggests year-over-year growth of 3.05% and 544.44%, respectively. The EPS estimates for 2024 have moved up 5 cents in the past 60 days. The EPS estimates for 2025 have moved up 5 cents in the past seven days.

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American Axle & Manufacturing Holdings, Inc. (AXL) : Free Stock Analysis Report

Lithia Motors, Inc. (LAD) : Free Stock Analysis Report

Blue Bird Corporation (BLBD) : Free Stock Analysis Report

Suzuki Motor (SZKMY) : Free Stock Analysis Report

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Zacks Investment Research